World Bank (WB) raises India’s FY26 growth forecast to 7.2%

Key facts

• The World Bank (WB) raised India’s growth forecast for FY26 to 7.2%, up from the 6.3% projected in June 2025.
• India's Gross Domestic Product (GDP) growth is estimated to moderate to 6.5% in FY27 and edge up to 6.6% in FY28.
• The National Statistical Office (NSO) estimated India's FY26 growth at 7.4% on January 7.
• South Asia’s growth is expected to rise to 7.1% in 2025 and slow to 6.2% in 2026.
• Global growth is projected to moderate to 2.6% in 2026 from 2.7% in 2025.
• The United States economy is estimated to rise to 2.2% from 2.1%, while China's economic growth is forecast to slow to 4.4% from 4.9%.
• The WB projections assume that 50% tariffs by the United States remain in place throughout the forecast horizon.